Education is not getting cheaper and when it comes to studying abroad, everyone wants to make it to good universities. Even though studying abroad is a dream for many students, the costs associated with education in top universities often make it seem difficult. This is where an education loan comes into the picture. Education loans come in handy if you want to pursue higher education without utilising all your saved money. In 2025, student loans with low interest rates are in demand, as students and parents strive to minimise repayment burdens.
Types of Student Loan Interest Rates
Education loans come with two types of interest rates: fixed interest rates and floating interest rates. The fixed interest rate remains constant throughout the loan tenure, which means you can predict your EMIs. The floating interest rate varies depending on market conditions. It may start low or rise, thus fluctuating your EMIs.
Compare Current Education Loan Interest Rates
Let’s take a look at the education loan rates offered by various banks in India. It may be noted that these figures may vary and you must get in touch with your lender or bank to get accurate figures.
| Banks | Interest Rates | |
|---|---|---|
| Canara Bank | 9.25% p.a | |
| State Bank of India | 8.05% p.a. to 11.75% p.a | |
| Punjab National Bank | 4% p.a. to 12.75% p.a | |
| Bank of Baroda | 8.15% p.a. to 12.50% p.a | |
| Bank of Maharashtra | 8.10% p.a. to 11.30% p.a | |
| HDFC Bank | Starting from 9.50% p.a | |
| Indian Overseas Bank | 9.75% p.a. to 10.25% p.a | |
| ICICI Bank | 10.25% p.a. onwards | |
| Axis Bank | 13.70% p.a. to 15.20% p.a | |
| IDBI Bank | 8.55% p.a. to 11.15% p.a | |
| Bank of India | 11.05% p.a. to 11.85% p.a | |
| Kotak Mahindra Bank | Up to 16% p.a | |
| Bajaj Finance | 13.00% p.a. to 32% p.a. | |
| UCO Bank | 11.30% p.a. to 11.70% p.a |
Calculation of Student Loan Interest Rates by CASHe
The CASHe education loan interest rate ranges from 2.79% to 3% per month (reducing balance interest) on the entire loan amount. We also offer a 5-day interest-free grace period to pay your education loan EMI at the end of every month. Here’s the loan configuration for an Educational Loan by CASHe
1. Tenure: 9 Months (270 Days)
Minimum Salary: ₹40,000
Loan Amount: ₹45,000 to ₹2,50,000
2. Tenure: 12 Months
Minimum Salary: ₹40,000
Loan Amount: ₹50,000 to ₹3,00,000
3. Tenure: 18 Months
Minimum Salary: ₹50,000
Loan Amount: ₹75,000 to ₹3,00,000
How to Calculate Your EMI on Education Loans
Calculating your EMI (Equated Monthly Installment) is an important step before applying for an education loan. Here’s how to do it:
The formula is: [P x R x (1+R)^N]/[(1+R)^N-1]
- P = Principal amount
- R = Rate of Interest
- N = Number of years for repayment (this is calculated in months).
If maths isn’t your thing there are online calculators that simplify this process. You just have to input your loan amount, interest rate, and tenure, and you will instantly see your EMI.
Factors to Consider When Taking an Education Loan
Here are the factors that you may want to consider when taking an education loan:
1. Interest Rate: Compare options to find loans with low interest rates.
2. Repayment Tenure: Longer tenures mean smaller EMIs but higher interest over time.
3. Moratorium Period: Look for loans offering repayment breaks until after your course completion.
4. Loan Margin: Check how much you will need to pay upfront as a student.
5. Eligibility Criteria: Ensure you meet the bank’s or lender’s requirements.
Eligibility Criteria
The eligibility criteria may differ from one lender to the other. At CASHe, the loan eligibility criteria for taking a personal loan for education purposes is that the applicant must be an Indian citizen of at least 18 years of age. The individual must be a salaried professional having a monthly salary of ₹40,000 or more.
Documents Required for a Student Loan
The documents required for availing an education loan are:
- Identity proof (Aadhaar, PAN).
- Address proof (utility bill, rental agreement).
- Income proof of co-borrower (salary slips, bank statements).
- Loan application form, duly filled.
- Admission letter of the educational institute.
- Passport-size photographs.
- Academic certificates.
- Scholarship document, if any.
- Declaration that no loan has been availed from another lender.
Conclusion
Getting the best education loan rates in 2025 requires research and planning. Choose wisely to keep your repayments stress-free and achieve your academic dreams without financial hurdles. At CASHe, we offer instant loans for students to help them pursue the education of their choice. Know more about the instant education loans at CASHe and apply now!
